The current state of the cryptocurrency market, especially Bitcoin and Ethereum, doesn’t always give a clear indication of “what’s next?” Crypto World analyst Josh said that big warning signals are flashing on Bitcoin’s charts as the price faces rejection from a key resistance area.
Looking at the chart, analysts point out that not much has changed in the past day. A key observation is the bullish movement of the DXY (US Dollar Index), which is hitting new highs in its short-term trend. Historically, increases in the DXY have correlated with declines in Bitcoin prices, so this bullish trend in the DXY is a bearish signal for Bitcoin and cryptocurrencies.
The analyst explains that while there may still be a major bull run in the long term, Bitcoin’s short-term trend is bearish. This bearish trend is expected to continue as long as the DXY remains bullish. For the short-term trend to turn bullish, the DXY would need to reverse bearish, which has not happened yet.
What’s next for Bitcoin?
Analysts analyzed the daily chart of Bitcoin and observed a rejection from the resistance area between $67,000 and $68,000, with a pullback occurring as the price approaches this level. This indicates that there is considerable selling pressure at this resistance zone. Analysts advise not to get too bullish until a breakout above $68,000 is confirmed. The key support levels to watch out for are between $63,000 and $64,000. If Bitcoin sinks below $63,000, it could fall further to previous lows near $60,000, $58,000, and $56,000.
Despite these short-term bearish trends, analysts note that a larger bull run could still be sustained as long as Bitcoin remains above its previous lows of $56,000 to $58,000. The market may be in a major sideways consolidation similar to past patterns.
